Comments on: Follow the Money… http://raincityguide.com/2006/01/31/follow-the-money/ Seattle's Leading Resource for Real Estate Information Fri, 19 Mar 2010 21:40:38 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: Real Estate Taxi http://raincityguide.com/2006/01/31/follow-the-money/#comment-341192 Real Estate Taxi Mon, 29 Jun 2009 20:19:48 +0000 http://raincityguide.com/2006/01/31/follow-the-money/#comment-341192 Grier, Great explanation,I always thought it was a complicated structure. I never truly understood where the money was thank you. Grier,

Great explanation,I always thought it was a complicated structure. I never truly understood where the money was thank you.

]]> By: jonathan levine http://raincityguide.com/2006/01/31/follow-the-money/#comment-5010 jonathan levine Mon, 24 Apr 2006 00:09:13 +0000 http://raincityguide.com/2006/01/31/follow-the-money/#comment-5010 Refinancing is the real game. Property pyramids have been built on property speculators creating secondary companies, whilst driving on one way street . Easy money ensures refinancing , which in turn syphons money down the pyramids to the genuine solid property companies, owned by these property gamblers which are situated at the bottom of their property portfolios. The top of the pile (their most recent purchases) is very speculative but that's the speculators intentions .In theory banks, and everyone on the ladder think they are benefiting. But the real crisis is that the foreign purchasers of MBA's are foreign GOVERNMENT backed companies. As property prices continue their incessant rise, the country becomes less and less competitive, it's forced to pay its employess more and more to live! This in turn is driving the nations young to far off shores to seek affordable housing. When your hear of the trillions of foreign held securities I bet MBA's are a massive chunk of their holdings. Its a recipe for a total social-economic disaster. Refinancing is the real game. Property pyramids have been built on property speculators creating secondary companies, whilst driving on one way street . Easy money ensures refinancing , which in turn syphons money down the pyramids to the genuine solid property companies, owned by these property gamblers which are situated at the bottom of their property portfolios. The top of the pile (their most recent purchases) is very speculative but that’s the speculators intentions .In theory banks, and everyone on the ladder think they are benefiting. But the real crisis is that the foreign purchasers of MBA’s are foreign GOVERNMENT backed companies. As property prices continue their incessant rise, the country becomes less and less competitive, it’s forced to pay its employess more and more to live! This in turn is driving the nations young to far off shores to seek affordable housing. When your hear of the trillions of foreign held securities I bet MBA’s are a massive chunk of their holdings. Its a recipe for a total social-economic disaster.

]]> By: ARDELL http://raincityguide.com/2006/01/31/follow-the-money/#comment-1769 ARDELL Wed, 01 Feb 2006 18:47:09 +0000 http://raincityguide.com/2006/01/31/follow-the-money/#comment-1769 Anything that keeps the market moving and homes selling, influences appreciation. Here in the Seattle area, I cannot confirm that rates are the key factor. The availability of zero down financing with closing costs rolled in, has been more of an influence in the last few years. There is a saying in this business, that if the lowest priced housing moves, everything else will follow. If you can't sell the $150,000 condo, then those people can't move to the $300,000 townhome and those people can't move up to the $450,000 single family and so on and so on. Since many low end purchases are dependent on high rate seconds ranging from HELOCs to 8.65% to almost 12% seconds, low rates has not been the key. The ability to purchase with little to no money coming out of the buyer's pocket, has been the key factor. There was a nervous blip two years ago when Greenspan's warnings sent a message to appraisers to be more conservative. If we run into a situation where properties will not appraise with closing costs rolled in, that will set in motion a chain of evernts, regardless of interest rates. If people need to have more cash to close, that will have a greater impact than interest rate fluctuations. As always, my $.02 YMMV Anything that keeps the market moving and homes selling, influences appreciation. Here in the Seattle area, I cannot confirm that rates are the key factor. The availability of zero down financing with closing costs rolled in, has been more of an influence in the last few years.

There is a saying in this business, that if the lowest priced housing moves, everything else will follow. If you can’t sell the $150,000 condo, then those people can’t move to the $300,000 townhome and those people can’t move up to the $450,000 single family and so on and so on.

Since many low end purchases are dependent on high rate seconds ranging from HELOCs to 8.65% to almost 12% seconds, low rates has not been the key. The ability to purchase with little to no money coming out of the buyer’s pocket, has been the key factor.

There was a nervous blip two years ago when Greenspan’s warnings sent a message to appraisers to be more conservative. If we run into a situation where properties will not appraise with closing costs rolled in, that will set in motion a chain of evernts, regardless of interest rates. If people need to have more cash to close, that will have a greater impact than interest rate fluctuations.

As always, my $.02 YMMV

]]> By: Grier Smith http://raincityguide.com/2006/01/31/follow-the-money/#comment-1768 Grier Smith Wed, 01 Feb 2006 17:51:49 +0000 http://raincityguide.com/2006/01/31/follow-the-money/#comment-1768 The most recent data I've found (and i know it's old) regarding foreign investment in Mortgage Backed Securites is from a Goldman Sacks report dated Nov. 2005, siting 2003 statistics. In that report, it showed foreign investment made up only 5% of the total investment in MBS's. The appreciation is absolutly influenced by the cheap rates, but I'm just not sure how much foreign investment influence that. It's a great question and I'm interested in knowing more. The most recent data I’ve found (and i know it’s old) regarding foreign investment in Mortgage Backed Securites is from a Goldman Sacks report dated Nov. 2005, siting 2003 statistics. In that report, it showed foreign investment made up only 5% of the total investment in MBS’s.

The appreciation is absolutly influenced by the cheap rates, but I’m just not sure how much foreign investment influence that. It’s a great question and I’m interested in knowing more.

]]> By: Eric D. http://raincityguide.com/2006/01/31/follow-the-money/#comment-1766 Eric D. Wed, 01 Feb 2006 06:30:31 +0000 http://raincityguide.com/2006/01/31/follow-the-money/#comment-1766 Where does the money go/come from on Wall Street? Foreign sources? China? Can't some of the current housing appreciation be attributed to cheap rates financed by foreginers? Where does the money go/come from on Wall Street? Foreign sources? China? Can’t some of the current housing appreciation be attributed to cheap rates financed by foreginers?

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